IBM and Monitise Form Global Go-to-Market and Resourcing Alliance
August 27 2014 - 8:00AM
Business Wire
Monitise enters agreement to transfer UK
Professional Services staff to IBM
IBM (NYSE: IBM) and Monitise plc (LSE: MONI.L) (“Monitise”,
the “Company” or “Group”) today announced a global digital commerce
and resourcing alliance.
Combining the best of both companies’ mobile banking, payments
and commerce technology, this alliance brings IBM sales and
specialist resources to clients around the world with the full
spectrum of advice, solution design and delivery of Monitise’s
Mobile Money services. Building on Monitise’s IBM Global Alliance
announcement in July that included the IBM MobileFirst portfolio of
offerings. Monitise’s technology will be enabled, hosted and sold
as an IBM cloud-delivered solution worldwide in the
business-to-business space. This in turn underpins Monitise’s
go-to-market strategic priorities as announced in March 2014,
including its target for 200 million users using Mobile Money
products and services developed by Monitise by 2018.
As part of the collaboration, IBM’s global go-to-market
investment of dedicated resources and promotional initiatives,
globally and in region, will pair with Monitise staff to pursue
Mobile Money opportunities. While commercial opportunities
initially will be targeted at financial institutions, the companies
will also address the needs of mobile network operators,
retailers and any vertical requiring simple API connectivity to
bank-grade, interoperable and scalable mobile payment and commerce
functionality and content.
As part of today’s agreement, teams from Monitise’s UK
development and integration business known as Professional Services
-- including a number of contractors -- will be transferred into
IBM; IBM will in turn deliver services back to Monitise. The
transfer, which involves UK employees representing a little over 20
percent of Monitise’s global employee base, means Monitise
technology talent will now be available for both Monitise and IBM
customer projects and vice versa. All Monitise contracts and client
relationships, intellectual property, commitments and delivery
remain unchanged.
The collaboration will substantially increase Monitise’s ability
to handle larger custom projects globally, in addition to
implementing standardised solutions. Equally, the resources will
enhance IBM’s ability to deliver existing and future Monitise-based
Mobile Money solutions to customers. Efficiencies derived from the
collaboration support Monitise’s target, as reiterated in its
trading update in July 2014, to be profitable in FY 2016 and
achieve an EBITDA margin of at least 30 percent by end of FY
2018.
“Today’s businesses require solutions that radically streamline
and accelerate mobile adoption to reinvent the customer
experience,” said Bridget van Kralingen senior vice president,
Global Business Services, IBM. “Our deepening collaboration with
Monitise, our strong cultural fit and shared vision for a
multi-channel future, ensures that we are perfectly positioned to
help our clients take full advantage of the mobile
opportunity.”
Monitise plc CEO Alastair Lukies said: “Today’s announcement
marks a new milestone in delivering an industry-leading Mobile
Money partnership, establishing IBM and Monitise as a global
powerhouse. Together, we are in an unrivalled position to enable
banks and other leading businesses to build on mobile banking and
payments capabilities to tap into the growing digital commerce
opportunity.”
Lukies added: “Our deeper level of collaboration with IBM
supports the strategy update we announced in March with our
increasing product focus and our ability to scale, both in terms of
our delivery capabilities and our global footprint, as well as
letting each company focus on its proven market-leading strengths.
Creating the most comprehensive and easiest access to the best
Mobile Money tools for businesses around the world is the biggest
driver behind this deal. No matter whether you are a start-up,
mid-sized or international bank, mobile network operator or
retailer, this unrivalled partnership delivering cost-effective
interoperable bank, pay and buy mobile products and solutions from
any country, helps business unlock the commercial benefits of
Mobile Money.
About IBM MobileFirst
IBM’s 5,000 mobile experts have been at the forefront of mobile
enterprise innovation. IBM has secured more than 4,300 patents in
mobile, social and security, which have been incorporated into IBM
MobileFirst solutions that enable enterprise clients to radically
streamline and accelerate mobile adoption, help organizations
engage more people and capture new markets. Through IBM's
partnership with Apple, the two organizations are transforming
enterprise mobility with a new class of industry specific business
apps. For more information on IBM MobileFirst, visit the press kit
or www.ibm.com/mobilefirst. Follow @IBMMobile on Twitter, and see
IBM MobileFirst on YouTube, Tumblr and Facebook.
About Monitise
Monitise (LSE: MONI) is a world leader in Mobile Money -
banking, paying and buying with a mobile device. Leading banks,
payments companies, retailers and mobile networks utilise
Monitise's technology platforms and services to securely connect
people with their money.
30 million consumers have registered for Monitise’s patented
technology to 'bank anywhere', 'pay anyone' and 'buy anything',
accounting for $88bn of payments, purchases and transfers annually.
Additionally, apps designed by the Group’s Monitise Create and MEA
divisions have been downloaded 30 million times. More information
is available at www.monitise.com.
MonitiseInvestor RelationsAndrew GriffinHaya
Herbert-BurnsTel: +44(0)20 3657
0366investorrelations@monitise.comorMedia RelationsGavin
HaycockTel: +44(0)20 3657
0362Gavin.haycock@monitise.comorCanaccord GenuitySimon
BridgesCameron DuncanTel: +44(0)20 7523
8000orFTI ConsultingCharles PalmerSophie McMillanTel:
+44(0)20 3727 1000orIBMUK External RelationsLucy
LinthwaiteTel: +44(0)20 7021 8911Lucy.linthwaite@uk.ibm.com
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